XYZ Company Uses Standard Costs for Allocating Costs to Work-In-Process

question 36

Multiple Choice

XYZ Company uses standard costs for allocating costs to work-in-process and finished goods inventory.What internal control is required with respect to these costs to ensure proper valuation of inventory?

• A)Procedures must be designed to keep the standards updated for changes in production processes and costs.
• B)Computer software should be used to make sure that the standard costs are properly updated into the inventory item master file.
• C)Input edit routines should be used to help detect input data entry errors for the entry of the standard costs.
• D)Standard costs should be used to provide a value for inventory every month by calculating cost times quantity on hand.

Comprehend the fundamental questions every economy faces and how different economic systems address these questions.

Evaluate the role of risk in a market system, including its distribution and impact on economic decisions.

Understand how consumer preferences influence production decisions in a market economy.

Analyze how technology and operational decisions, like bitcoin mining, reflect economic principles of cost minimization.

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Definitions:

IBM Way

A term that encapsulates the business philosophies, values, and practices that have characterized IBM's approach to business and innovation.

Planning Gap

A discrepancy between current performance levels and desired performance levels, indicating an area for strategic development.

Sales Response Function

A model that predicts the sales or market share response of a product or service to marketing effort or investment.

Contribution Margin

The amount by which sales revenue exceeds variable costs. It is used to cover fixed costs and generate profit.